SSS mulls sale, dev’t of idle properties

The Social Security System(SSS) plans to either sell or develop its idle properties to boost collections.

SSS president and chief executive officer Emmanuel Dooc told The STAR that the pension fund is looking for ways to strengthen its financial position given its larger disbursement as a result of the approved pension rate hike.

“We are open to whatever (option) will provide us the best yield,” Dooc said.

According to earlier reports, the fund is looking to sell about P27 billion worth of its prime properties.

Among the properties that could be sold are those located at the corner of Edsa and East Avenue in Quezon City, Diosdado Macapagal Boulevard in Pasay City, a property at the Bonifacio Global City in Taguig City and the old SSS building at the corner of Ayala Avenue and Rufino Street in Makati City.

Dooc also identified entering into joint ventures with developers as another possibility.

He said constructing a building would allow the fund to lease out office spaces to generate recurring income.

“We will be guided by what will best serve the interest of our members,” Dooc said.

Dooc said the fund would engage the services of property consultancy firms.

“As you know, we don’t have internal expertise so if ever we pursue that goal or plan, we need to engage professionals — property consultants so that we will be guided,” Dooc said.

The state-run pension fund saw a 43.06-percent jump in its expenditures in the first quarter to P44.77 billion, driven by the recently approved P1,000 additional benefit for pensioners last March.

Despite the growing expenditures brought by the approved pension hike, the SSS earlier assured its members it has enough reserves.

The SSS investment reserve fund stood at P478 billion as of the end of April this year.

Total collections from SSS contributions grew 9.6 percent in the first four months to P52.18 billion.